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[1][mtilogo.gif]
[2]News 7. December 1999.
_________________________________________________________________

Foreign Demand High for Real Estate in Somogy County

hd: Budapest, 7 December (MTI) - With nearly 1,000 pieces of real
estate bought by foreigners in the south-west Hungarian Somogy county
this year, now foreign citizens, mainly Germans, own a total of 3,000
properties in the region, Jeno Nemeth, head of the local public
adiministration office, told MTI.

Two-thirds of the purchases were at Lake Balaton and in its vicinity
and the neighbourhood of the county seat of Kaposvar is also popular
with foreign buyers.

Germans bought 730, Austrians 129, Italians 19 and Americans 12
houses, cottages or farmsteads in Somogy county this year. Buyers also
included a few Yugoslav, Swiss and Slovak nationals. +++

MPs to Judge Social Security Budget Proposals for 2000

hd: Budapest, 7 December (MTI) - A plenary parliamentary session
opened on Tuesday morning.

MPs will continue the second reading of next year's central budget
bill and later decide on proposals submitted to the social security
budget for 2000. +++

Government Reshuffle Plans - Paper /01

hd: Budapest, 7 December (MTI) - The national dailies today reported
on comments made on Monday by MTI's sources close to the government
that Minister of Cultural Heritage Jozsef Hamori will soon be replaced
by Zoltan Rockenbauer, now Parliamentary State Secretary at the Prime
Minister's Office, and Minister of Economic Affairs Attila Chikan by
economist Gyorgy Matolcsy.

Nepszabadsag said Prime Minister Viktor Orban would announce the
replacements soon, maybe after today's cabinet session. Today he is
coordinating on the matter with Jozsef Torgyan, Chairman of coalition
partners Independent Smallholders' Party, who is in charge of the
Ministry of Agriculture and Regional Development.

At the Ministry of Cultural Heritage, Attila Varhegyi will remain
parliamentary state secretary and Gergely Prohle, the present
administrative state secretary, will become ambassador to Berlin. His
successor, Laszlo Baan, is currently the ministry's deputy state
secretary responsible for economic affairs. Rockenbauer will be
replaced at the Prime Minister's Office as parliamentary state
secretary for foreign and security policy by Reka Szemerkenyi, but her
functions are set to change, according to the paper. (more)

nbl/nvzs/nrs

BUX Opens Down 4.42 Points

hd: Budapest, 7 December (MTI) - The Budapest Stock Exchange's BUX
index on Tuesday opened 4.42 points lower, at 7,963.79. +++

Highways in Good Shape - Romanian Rail Strike Causing Delays

hd: Budapest, 7 December (MTI) - All of Hungary's motorways and
highways are in good condition and visibility is fine, said Tuesday
morning's road information service in a report to MTI. No jams were
reported in Budapest, either.

Hungarian railways (MAV) reports major arrival delays for the
Trans-Balkan and Ovidius Expresses because of a railway strike in
Romania. InterCity trains from Romania have also been delayed and some
international trains have been cancelled. MAV reported cancellation of
the Dacia and Carpathia expresses, and the Ister EN train out of
Romania. All trains leaving Budapest for Romania will depart on
schedule, though MAV warns passengers to expect delays.

Budapest Ferihegy Airport reports flights are runnung on schedule. +++

Government Reshuffle Plans - Paper /02

hd: Budapest, 7 December (MTI) - Nepszabadsag said that for a long
time Imre Somody, president and CEO of Budapest's Pharmavit Rt., was
mooted to take the place of Chikan, but he refused the invitation,
saying he did not want to break up a valid manager's contract.

The daily also reported on forthcoming changes to the structure of the
Ministry of Economic Affairs, with a decisive role likely to be
assigned to the deputy state secretariat in charge of economic
strategy. Chikan would probably be asked to serve as head of the prime
minister's advisory body on economic policy, the paper added.

Carrying profiles on the two candidate ministers, Nepszabadsag wrote
that Matolcsy, a 44-year-old graduate of the Budapest University of
Economics, was political state secretary at the Prime Minister's
Office in 1990, director of the Research Institute for Privatisation
in 1991, staff member of the London-based European Bank for
Reconstruction and Development from 1991 to 1995, and head of the
Property Foundation Privatisation Research Institute since 1995.
(more)

nbl/nvzs/nrs

Government Reshuffle Plans - Paper /03

hd: Budapest, 7 December (MTI) - Rockenbauer, 39, tipped as minister
of cultural heritage, graduated from Budapest's Eotvos Lorand
University. In 1988 he joined the Fidesz-Hungarian Civic Party, the
leading force in the current government coalition, and became a Fidesz
MP in 1990. He has been parliamentary state secretary at the Prime
Minister's Office since September 1999.

Jozsef Torgyan told Nepszabadsag on Monday no change was expected this
year at posts held by Smallholder ministers. +++

Tourism Revenue Up in 1999

hd: Budapest, 7 December (MTI) - Revenue from tourism amounted to over
USD 1.2bn in the first 9 months of 1999. The inflow has been high
enough to cover half of the balance-of-payments deficit for that
period, writes Tuesday's daily Nepszabadsag, quoting the Economics
Ministry's report on tourism.

The same report gives average spending rates for January-September as
USD 86/tourist/day, which is 15pc over the corresponding period of
last year.

There were some 20pc more visitors from Asia this year, and smaller
increases in travellers from Finland, Croatia, Israel, Canada and
Norway. Travel from Austria and Germany has remained constant, and
still accounts for the largest segment of the market. +++

Hungary's Investment in Romania over USD 100m So Far

hd: Budapest, 7 December (MTI) - The value of direct Hungarian capital
invstment in Romania so far is expected to surpass the USD 100m mark
this year, Tuesday's business daily Vilaggazdasag noted in its
coverage of a Hungarian-Romanian business forum organised on Monday by
ITD Hungary in the east Hungarian town of Kecskemet.

Janos Halasz, head of ITD Hungary in Bucharest, said at the conference
that Hungarian companies had been investing in Romania since 1991.
September figures show Romania has 2,989 joint ventures involving
Hungarian capital, with equity falling short of USD 1,000 in 1,558 of
them.

Investments of over USD 1m were carried out by only 20 Hungarian firms
in Romania. The largest sum, USD 23.3m, was invested by the national
oil and gas company MOL, which has recently opened its 30th filling
station in the neighbouring country.

Hungary ranks 13th among investors in Romania with 2.3pc of total
foreign investment there. +++

20,000 Drug Dealers in Hungary

hd: Budapest, 7 December (MTI) - Drug dealing is a regular source of
income for nearly 20,000 Hungarians (the total population of Hungary
is 10 million) with over HUF 40bn changing hands each year (USD 1 =
HUF 252). This was reported by the head of the drug crimes
investigation section of the Hungarian National Police Force, Gyorgy
Hollosi.

Police estimate that Hungarians use 14.5 tons of marijuana, 3 tons of
heroin and 6 tons of amphetamines a year. The annual number of
prosecutions is about 800, which includes abusers caught in the act,
Hollosi said in a statement to the daily paper, Nepszava. +++

Strategic Partnership with Croatia to Continue - FM Official

hd: Budapest, 7 December (MTI) - Relations between Hungary and Croatia
have a strategic value, and must be reinforced after Croatia's
scheduled 3 January elections, said deputy state secretary to the
Hungarian foreign ministry, Gabor Gabi, in a statement to Tuesday's
edition of Magyar Nemzet, after meeting with Croatian Deputy FM Josip
Paro in Budapest on Monday.

A new government in Croatia will not interrupt bi-lateral relations,
since we have a number of joint projects including motorway
construction, cooperation between businesses, and updating the harbour
at Rijeka, that are very important to both countries, stated the
Hungarian political figure. +++

Orban to Announce Cabinet Reshuffle Soon

hd: Budapest, 7 December M(TI) - Prime Minister Viktor Orban said he
would announce his decision on a government reshuffle after Tuesday's
government session.

"Once the government session is over, I'll report on everything at the
proper time and place," he told reporters after a Budapest meeting of
the core cabinet on Tuesday.

The session was attended by all members of the body, including Jozsef
Torgyan, Minister of Agriculture and Regional Development, Ibolya
David, Minister of Justice, Laszlo Kover, Minister without Portfolio
overseeing the national security services, and Minister Istvan Stumpf,
in charge of the Prime Minister's Office.

The government is holding its usual weekly meeting on Tuesday.

MTI on Monday learned from sources close to the government that
Minister of Cultural Heritage Jozsef Hamori will be replaced by Zoltan
Rockenbauer, Parliamentary State Secretary at the Prime Minister's
Office, and Minister of Economic Affairs Attila Chikan by economist
Gyorgy Matolcsy. +++

Fidesz Might Separate Premier and Party Head Functions /01

hd: Budapest, 7 December (MTI) - The presidium of the Fidesz-Hungarian
Civic Party is proposing to party organisations and elected bodies
that they consider separating the post of party chairman and prime
minister, Fidesz's National Presidium said in a statement to MTI on
Tuesday.

The presidium is convinced that, contrary to the practice of other
parties and governments hitherto, successful adaptation to the
challenges of the new millennium requires new approaches and justifies
an innovative reappraisal regarding the proportionate distribution of
burdens, the statement says.

Viktor Orban has been prime minister since the 1998 elections and
Fidesz chairman since 1993. Following the political changes in

1989, the late Prime Minister Jozsef Antall (1990-1993) was also
leader of the main coalition party, the Hungarian Democratic Forum.
Between 1994 and 1998, Gyula Horn headed the government and the senior
coalition Hungarian Socialist Party at the same time. (more)

nbl/nvzs/nrs

Fidesz Might Separate Premier and Party Head Functions /02

hd: Budapest, 7 December (MTI) - The Fidesz presidium assessed work
done since the party came to government at its meeting in Budapest on
Monday evening, said the statement.

The presidium noted with satisfaction that the country had achieved
outstanding results in preparations to join the European Union
according to all relevant opinions at home and abroad.

It reflects the joint success and performance of the government and
the country's people that economic growth has double the EU average
despite international crises and natural disasters, according to the
statement. +++

Microsoft Prepared for Y2K in Hungary

hd: Budapest, 7 December (MTI) - Microsoft's East European product
support manager, Gabor Hirschler, told the press in Budapest on
Tuesday that following extensive YK2 tests on its products worldwide,
he is confident that there will not be any major mishaps.

Nevertheless, Microsoft Hungary staff will be on telephone duty on 31
December and in the first days of January, providing users product
support without registration.

The firm expects no special problems, but warned that it is
anticipated that there will be several computer viruses activated on
31 December or 1 January. +++

Nuclear Trade Seminar for Soviet Successor States

hd: Budapest, 7 December (MTI) - Hungary's National Atomic Energy
Office (NAEO) is holding a seminar on nuclear materials trade jointly
with the International Atomic Energy Agency and the U.S. Department of
Energy, the NAEO told MTI on Tuesday.

The conference is being attended by experts from six former Soviet
republics, which were offered assistance by several countries from
around the world since the early 1990s in setting up their nuclear
materials inventory and nuclear exports licensing systems. Hungary
joined the programme at the beginning of 1992. +++

Budapest Forint Fixing

hd: Budapest, 7 December (MTI) - Official forint fixing of the
National Bank of Hungary:

Currency

rate per 1 unit of currency

Australian dollar

157.78

Austrian schilling

18.53

Belgian franc (100)

632.23

Canadian dollar

168.61

Czech crown

7.05

Danish krone

34.29

Dutch guilder

115.73

Euro

255.04

Finnish markka

42.89

French franc

38.88

German mark

130.40

Irish pound

323.83

Italian lire (1000)

131.72

Japanese yen (100)

241.08

Norwegian krone

31.32

Polish zloty

59.42

Portuguese escudo (100)

127.21

Pound sterling

404.10

Slovakian crown

5.99

Spanish peseta (100)

153.28

Swedish krona

29.58

Swiss franc

159.40

USA dollar

248.48

+++

Soccer - World Cup 2002 - Hungarian Echo

hd: Tokyo/Budapest, 7 December (MTI) - Hungarian soccer officials
interviewed by MTI were somewhat divided over the chances of the
national team after group divisions for the 2002 World Cup
qualification rounds were made public in Tokyo on Tuesday.

The FIFA draw put Hungary in the same group (Europe 8.) as Romania,
Italy, Lithuania and Georgia. Group winners automatically make it to
the final rounds, while the runners-up have to play each other for a
seat on the Korea or Japan bound plane where the final meets will be
contested.

Former Hungarian association and national team captain Lajos Baroti
said, "If things go according to predictions, we don't stand a
chance." Kalman Meszoly, another former association and national
captain, and president of the Hungarian Professional Soccer League
said, "We could have had worse luck with the draw. If our preparations
are perfect, and we initiate some changes in the structure of our
game, we might even take second place in the group."

Gyorgy Mezey, yet another former association and national team
captain, and vice-president of the Hungarian Soccer Association, also
thought there was a chance the team might place second in the group.
+++

Timisoara Anniversary: Reformed Bishop Sees Message

hd: Budapest, 7 December (MTI) - On the 10th anniversary of the
beginning of the change in Romania's political regime, an attempt must
be made to shift the diverted processes of transformation back onto
the right course, said Bishop Laszlo Tokes, Reformed Church diocesan
of Bucea, honorary president of the Hungarian Democratic Union of
Romania (HDUR), at a media briefing in Budapest on Tuesday, held to
mark the anniversary of the beginning of the Romanian revolution.

Tokes expressed his thanks to all Hungarian communities in and outside
of Hungary who actively assisted the participants in Romanian events
at the turning point of 1989 and 1990.

The honorary president of the HDUR reminded journalists that the
lead-off to the collapse of the communist dictatorship had been the
peaceful resistance of the Reformed Church assembly of Timisoara,
followed by the peaceful demonstrations of the citizens of Timisoara.

Ecumenic relations among churches and Hungarian-Romanian national
reconciliation must continue to be our important objectives, stressed
the bishop. +++

BUX Down 46.41 Points at Close

hd: Budapest, 7 December (MTI) - The official share index of the
Budapest Stock Exchange, the BUX, closed Tuesday at 7921.80 points,
down 46.41 points.

Compared to Monday's close, the figure was down 0.58pc. +++

Chikan and Hamori to be Replaced - Government Spokesman

hd: Budapest, 7 December (MTI) - Minister of Economic Affairs Attila
Chikan, and Minister for Cultural Heritage Jozsef Hamori are leaving
the government and being replaced by Gyorgy Matolcsy and Zoltan
Rockenbauer, announced Gabor Borokai, spokesperson, to a media
briefing following Tuesday's cabinet meeting.

The announcement is in line with information received earlier on
Tuesday. MTI provided bios on the two new ministers earlier in the
day. +++

New Bridge at Hungary-Austria Border

hd: Budapest, 7 December (MTI) - A new bridge over the main canal at
Hansag opened Tuesday at the Austrian-Hungarian border, as part of the
highway linking Hungary's Fertod with Pamhagen, Austria.

In a statement to MTI, Peter Sumegi, chief engineer of the western
Gyor-Moson-Sopron County Highway Authority said the reinforced
concrete structure had an 80 ton capacity and would replace a wooden
frame bridge that had served as a link between the two countries for
eight years.

Cars and buses will have regular access to the bridge, and
agro-machinery and delivery vehicles that need to travel between the
two countries also will be given special permission to use it.

The bridge has bike paths to facilitate access by the growing numbers
of tourists, who have been biking around Lake Ferto, which is nestled
in between the two countries.

The old bridge, set up in 1991 by the Austrian armed forces as a
temporary measure, has been taken down with the opening of the new
one. +++

Parliament: Ceremony on 1 January

hd: Budapest, 7 December (MTI) - Speaker of Parliament Janos Ader on
Tuesday proposed at a session of the House Committee that instead of
holding a festive session, a ceremony should be held in Parliament on
1 January, 2000, as the opening of the millennium year marking the
1,000th anniversary of Hungarian statehood.

The House Committee members told a press conference after the session
that guests would be invited for the ceremony by the President of the
Republic, the Prime Minister and speaker, and the Holy Crown,
currently exhibited in the National Museum, would arrive in Parliament
building that day, too. However, the vote on the bill related to the
state founding would not be held on 1 January. (The bill is aimed at
commemorating the significance of the founding of the state by law.)

Ader said the Committee members unanimously supported his motion and
that the president also considered it a good idea. +++

nsim/nsk/nim

IOC Vice-President Awarded Honorary Doctorate

hd: Budapest, 7 December (MTI) - The Council of the Hungarian
University of Physical Education on Tuesday awarded an honorary
doctorate title to Keba M'Baye, Vice-President of the International
Olympic Committee (IOC) and President of the International Sport
Arbitration Tribunal (TAS).

University rector Jozsef Tihanyi welcomed the sports leader from
Senegal, whose work was appreciated by Tamas Ajan, General-Secretary
of the Hungarian Olympic Committee.

After receiving the diploma, the IOC Vice-President delivered a
lecture entitled "The Olympic Movement on the Threshold of the Third
Millennium". +++

nsim/nsk/nim

Parliament: Social Insurance Budget

hd: Budapest, 7 December (MTI) - Hungarian Parliament on Tuesday
approved, with 175 votes in favour, 120 against and 6 abstentions, the
2000 budget of the social insurance financial funds.

The law stipulates the joint revenue aggregate amount of the pension
insurance and health insurance funds at HUF 1,717,149m, the
expenditure aggregate amount at HUF 1,759,460m, the deficit at HUF
42,311m. +++

nsim/nsk/nim

EU Accession - Foreign Minister in Brussels

hd: Brussels, 7 December (MTI) - Hungarian Foreign Minister Janos
Martonyi said nine of the 23 chapters opened in the course of
accession talks between the European Union and Hungary have been
provisionally closed, and a further three or four are relatively near
closure.

Talking at the end of the fourth round of negotiations in Brussels on
Tuesday, the foreign minister said the talks are progressing according
to the pace planned in advance, and the negotiations targets were
fulfilled in the second half of 1999 as well. There is thus rational
hope for the pace to be upheld in the future, and that the first
accessions could take place from the first day of 2003, Martonyi said.

Alongside the talks, the EU and Hungary held the sixth session of the
so-called associate committee in Brussels on Tuesday during which
Martonyi thanked the EU for its support in connection with clearing
the Danube bed.

The minister also asked that Hungarian companies be able to join into
the tenders of the EU and other international institutions as
full-right participants in the framework of South-East European
reconstruction process. +++

nsim/nsk/nim

Miskolc-Kosice Euro-Region Press Briefing

hd: Budapest, 7 December (MTI) - The north Hungarian
Borsod-Abauj-Zemplen county and its seat, the city of Miskolc, and the
Slovak city of Kosice and its vicinity will, in the future, jointly
enter the infrastructure and economy development competitions
announced by the European Union.

This was announced at a press conference held in Miskolc on Tuesday by
officials of the two cities and regions, on the occasion that the
"Miskolc-Kosice Region Public Association" was set up.

The organisation aims at working out a cooperation agreement under
which successful competitions can be submitted to the EU's
trans-border regional competitions.

The European Union provides special preference to such economic,
infrastructure, trade, cultural, health care and sports relations. +++

nsim/nsk/nim

Men's Basketball Saporta Cup Results

ld: Budapest, 7 December (MTI) - The Matav-Pecs men's basketball team
was unable to win its second-leg meet in the basketball Saporta Cup,
after losing its away match.

Group F, 9th round:

Matav-Pecs (Hungary) - Fenerbahce SK (Turkey) 57-61 (33-29) Pecs, 1500
spectators Best scorers: Meszaros 10, Czigler 11, Whigfield 11 for
Matav

and Robinson 15, Curcic 11, Abi 12 for Fenerbahce

x x x x x

Group C, 9th round: Albacomp-UPC (Hungary) - Elan Chalon-sur-Saone
(France)

73-76 (37-40)

Szekesfehervar, 2000 spectators Best scorers: Shannon 32/12, McClandon
17 for Albacomp

and Ostrowski 23/9, Gatrin 13/6 for Elan

+++

Prime Minister on Cabinet Reshuffle /01

hd: Budapest, 7 December (MTI) - Prime Minister Viktor Orban said the
reason for the cabinet reshuffle was that the government now faces
different tasks: the most important pillars of civic society now
exist, which is why concrete programmes must be implemented in the
future, rather than structural transformations.

As was reported, Minister for Economic Affairs Attila Chikan and
Minister for Cultural Heritage Jozsef Hamori are leaving the
government, to be replaced by Gyorgy Matolcsy and Zoltan Rockenbauer,
respectively.

Speaking to journalists at a background meeting on Tuesday, Orban said
he was particularly satisfied with Attila Chikan work.

He recalled that the task of the outgoing minister was to prove to the
society of economists and to the public that it is possible to
implement a policy that aims at high economic growth and an economy
development policy directed by the state at the same time, without a
deterioration in the most important economic indices.

The prime minister also said that structural changes will also be
carried out in the ministry with the change at the top job.

Accordingly, the management of foreign economy will be taken over by
the Foreign Ministry, while the State Office for Technical Development
will be under the direction of the Ministry of Education.

On the future of the outgoing ministers, Orban said Chikan will head
the prime minister's economic advisory body, while Jozsef Hamori will
head the science policy secretariat that is under his supervision.

Orban added that the planned changes in the Prime Minister's Office
strengthen "political governing".

Accordingly, the five main secretariats of the Prime Minister's Office
will be directed by four political state secretaries, and the parallel
elements between the secretariats and the prime minister's cabinet
will be eliminated. (more)

Prime Minister on Cabinet Reshuffle /02

Referring to the ministers of the coalition partner Independent
Smallholders' Party, Orban said he sees no reason for their
replacement.

The prime minister said the position of the Smallholders, whereby they
also want to carry out an evaluation of the ministries they head, can
be appreciated, adding that it would be beneficial were this to take
place as soon as possible. +++

nsim/nsk/nim

Fire on Ship in Danube River

ld: Budapest, 7 December (MTI) - A fire broke out on Tuesday evening
on the Linz boat flying the German flag on the Hungarian section of
the Danube river, between Gonyu and Venek.

One member of the four-strong crew of the tug pushing barges suffered
smoke inhalation.

The engine room is still on fire, traffic on the river has been
halted, head of the National Union of Radio Amateurs, Sandor Dobai,
told MTI on Tuesday evening.

According to information from the Komarom River Police Headquarters,
the tug boat was pushing four barges carrying iron ore granulate
towards Austria. +++

nsim/nsk/nim

Weather Forecast for Wednesday

hd: Budapest, 7 December (MTI) - Frequently overcast, with occasional
local rain and showers in northern areas.

Highest daytime temperatures are expected to be between 3 and 8
degrees Centigrade, lowest night-time temperatures will be between 0
and -5 degrees Centigrade, the National Weather Service reported. +++

nsim/nsk

References

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